The Porto and North regions in Portugal have positioned themselves as the "epicenter of innovation" in the living market, according to a recent analysis by CBRE. The region has become a priority destination for foreign direct investment (FDI) in Portugal, including in the real estate sector. This has had a direct impact on the real estate market, with a surge in valuation and reconfiguration of activity, particularly in industrial and logistics, living, and hotel sectors.
The CBRE analysis, presented at the Porto Property Pace meeting, highlights that the North region is bucking the trend of the international macroeconomic and geopolitical context. Factors such as the availability of clean and competitive electricity, a robust industrial base, and a strategic location on an unimpeded Atlantic route make the region an attractive hub for FDI. José Maria Moutinho, Head of Research at CBRE Portugal, emphasized that Portugal's integrated and highly renewable energy matrix has become a significant lever for attracting investment.
The Porto region has conditions to become a major platform for the North macro-region and a gateway to a regional economy with true scale, according to Rui Moreira, Head of Porto at CBRE Portugal. The region's competitiveness is driven by its connection to a solid business and industrial territory, export-oriented vocation, and strong articulation between companies, academia, and talent. This ecosystem differentiates the region and provides stronger arguments for competing for international investment.
The stock of FDI in the industry, electricity, and water sectors has increased significantly, from €7.8 billion in 2012 to €36 billion in the second quarter of 2026. This growth is reflected in the real estate market, with a greater diversification between asset classes, and a reduction in the weight of traditional and core sectors. The yields prime have been revised to reflect the financial reality and preserve market attractiveness.
The living market is an area where Porto has established itself as a pioneering platform internationally. The Porto Metropolitan Area has over 5,150 beds in student residences, 745 units of flex living, 482 apartments in build-to-rent projects, and 384 rooms in senior living developments. The tourist sector is also dynamic, with a 45% growth in the hotel park in the Grande Porto area between 2019 and 2025.
The hotel sector has seen a significant increase in supply, with the number of rooms growing from 16,000 to nearly 25,000. Despite this growth, the occupancy rate remains at 64%, and the average price per occupied room has increased by around 30% to €112. The RevPAR has reached €72, driven by the qualification of the demand profile and the sophistication of the offer.
The growth of the hotel sector is also driven by the increase in high-end hotels, with five-star hotels representing 22% of the hotel park, and four-star hotels accounting for 44%. The sector's performance is a result of the region's ability to attract international investment and its strong business and industrial base.
Key points
- Porto and North region have become a priority destination for foreign direct investment, driving innovation in the living market.
- The region's competitiveness is driven by its connection to a solid business and industrial territory, export-oriented vocation, and strong articulation between companies, academia, and talent.
- The living market in Porto is a pioneering platform internationally, with a significant growth in student residences, flex living, build-to-rent projects, and senior living developments.
